Online commerce hits nearly $19 billion in Canada

CALGARY - The value of orders placed online by Canadians reached $18.9 billion in 2012, up 24 per cent from 2010 when the survey was last conducted, according to Statistics Canada.

The federal agency said on Monday that more than half of Internet users (56 per cent) ordered goods or services online in 2012, up from 51 per cent in 2010. In 2012, 77 per cent of Internet users did research on goods or services or window shopped.

Statistics Canada said Alberta was the second highest user of the Internet at 85 per cent of people over 16 years old - behind British Columbia at 87 per cent. Calgary had one of the highest uses in the country at 89 per cent.

“People are becoming increasingly comfortable making purchases online,” said Ben Brunnen, a Calgary economic consultant. “Ecommerce is a very convenient way for consumers to buy goods and services, and companies have been working hard to ensure customer confidence and satisfaction.

“Businesses have been expanding their online presence, reducing transaction costs, and enhancing security to help customers feel comfortable in making online purchases. Consumers have responded with a 24 per cent increase in the value of orders in just two years, and this trend should continue.

He sad the fact Calgary and Alberta are among Canada’s leading jurisdictions in terms of Internet connectivity is likely due to the supernet investments undertaken by the province in recent years.

“This will become an increasingly important competitive advantage for the province as electronic commerce expands,” added Brunnen.

Internet users aged 25 to 34 were most likely to make a purchase online, as 69 per cent did so in 2012, said the federal agency.

Of those Canadians who ordered online in 2012, the average online shopper made about 13 separate orders and spent approximately $1,450. Most Internet shoppers (82 per cent) had placed an order from a company in Canada, 63 per cent ordered from the United States and 21 per cen from a company in another country.

Among online shoppers, said Statistics Canada, 58 per cent purchased travel arrangements such as airline tickets or hotel reservations and 52 per cent purchased event tickets online. These two categories were the most cited in 2010 as well. Food, beverages or groceries were purchased online by 18 per cent of Internet shoppers in 2012, up from 11 per cent in 2010.

Almost one-quarter of online shoppers (24 per cent) purchased goods other than those in defined product categories.

Not only are Canadians buying online, almost one-quarter (23 per cent) sold items online, either through online auction sites or other means, said the report.

Ryan Gill, president/partner of Cult, a marketing engagement agency in Calgary, said e-commerce is exploding for a number of reasons.

“First, I think the web has become so pervasive in consumers’ lives that there’s very little prohibiting anyone from transacting online,” he said. “Second, advances in search and e-commerce technology is empowering consumers to find and buy products online faster and more easier than ever before – and simultaneously empowering companies to sell online with less effort. Factor in that 80 million millennials, the largest consumer group ever, have grown up with the Internet and now represent 21 per cent of consumer spending and I think you have the perfect storm.”

He said search engines like Google are also making it easier for consumers to find and compare products.

“A big reason for e-commerce growth is the ability to find the lowest price for a particular item being offered for sale online,” said Gill. “Who doesn’t like to feel like they got the best price? We all do. That’s why price-driven consumers have flocked to comparison shopping engines like PriceGrabber big time. Unfortunately, it’s also led to a retail phenomenon called showrooming, where consumers browse offline stores but then buy online – and often from a competitor. Customer-contributed online ratings and reviews also make it easy for consumers to make decisions based on the experience of others.”

As well, said Gill, smartphones and tablets have given consumers access to buy almost anything they want in the palm of their hand.

In 2012, 83 per cent of Canadians aged 16 or over used the Internet for personal use from any location, compared with 80 per cent in 2010.

“The popularity of social media and the Internet as a communication tool increased from 2010 to 2012. Just over two-thirds (67 per cent) of those Canadians who used the Internet visited social networking sites such as Facebook or Twitter in 2012, up from 58 per cent in 2010. As in 2010, female Internet users were more likely to use social networking sites than their male counterparts (70 per cent versus 64 per cent),” said Statistics Canada.

More than one-half of Internet users (58 per cent) accessed the Internet in 2012 via a wireless handheld device such as a cell phone or tablet, up from 33 per cent in 2010.

mtoneguzzi@calgaryherald.com

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